NVDA
NVIDIA
-- 138.850 TSLA
Tesla
-- 355.840 BABA
Alibaba
-- 124.730 INTC
Intel
-- 23.600 PLTR
Palantir
-- 119.160 
Moving average technical indicator
Moving Average (MA) is a technical indicator that uses statistical analysis to average prices over a certain period of time and connect the average values at different times. It is one of the technical indicators used to observe price fluctuation trends and can help investors confirm the existing price trend, determine future potential price trends, and identify signals of impending price reversal.
Here I have selected a stock as a reference.
$Berkshire Hathaway-B (BRK.B.US)$
Here are my observations:
Here I used the 5-day, 60-day, and 250-day moving averages.
Bearish signal
Red circle 2 - After the moving average rises and falls, when the short-term moving average falls below the long-term moving average, this is a sell signal.
Red circle 4 - There is a high possibility that the stock price will fall towards the moving average after a sudden significant increase in the stock price.
Upward trend
Green circle 1 - The short-term moving average is higher than the long-term moving average.
Green circle 3 - The downtrend of the average line is gradually stabilizing, and when the stock price is higher than the average line, this is a signal for an upward trend.
The stock price of Green Circle 5&6 suddenly plunged far below the moving average, with a significant deviation from the moving average. There is a high possibility of a rebound in the stock price.
Basically, the stock price is above the 250-day moving average, which makes it a good buy for long-term investment.
Here I have selected a stock as a reference.
$Berkshire Hathaway-B (BRK.B.US)$
Here are my observations:
Here I used the 5-day, 60-day, and 250-day moving averages.
Bearish signal
Red circle 2 - After the moving average rises and falls, when the short-term moving average falls below the long-term moving average, this is a sell signal.
Red circle 4 - There is a high possibility that the stock price will fall towards the moving average after a sudden significant increase in the stock price.
Upward trend
Green circle 1 - The short-term moving average is higher than the long-term moving average.
Green circle 3 - The downtrend of the average line is gradually stabilizing, and when the stock price is higher than the average line, this is a signal for an upward trend.
The stock price of Green Circle 5&6 suddenly plunged far below the moving average, with a significant deviation from the moving average. There is a high possibility of a rebound in the stock price.
Basically, the stock price is above the 250-day moving average, which makes it a good buy for long-term investment.
The support price of the moving average can be used as a buying or selling price.
Technical indicators provide an important perspective in due diligence, but they are not always 100% accurate.
In general, investors relying solely on moving averages may have difficulty in quickly and accurately determining the best entry point. It is necessary to combine them with other technical indicators such as the RSI indicator (Relative Strength Index) and the MACD indicator (Moving Average Convergence Divergence) for use. In a range-bound market, buy and sell signals from moving averages may frequently appear, which can confuse or even mislead investors.
I am also learning and not sure if the above points are correct. Let's discuss together.
I am learning here. @Moomoo Courses @Course TA Cici
https://live.moomoo.com/course/1336?lang=en-us&data_ticket=f1dd4799f3f97cac7bff22fdc9e19726
Update: I have added one more stock as a learning reference. $Verizon (VZ.US)$Welcome everyone to discuss.
1.Daily Candlestick Chart- By observing the daily candlestick chart (the first chart), I found that this stock is currently in a downtrend, with the MA (moving average) line moving downwards and the stock price falling below the MA250.
2.Weekly Candlestick Chart- Let's observe the weekly candlestick chart (the second chart), you can see that the stock price rebounds when it reaches the MA250 (end of the chart), indicating a strong resistance at MA250. In the last two red candlestick lines, you can see that the stock price and the MA (moving average) line decline after the rebound, and the current resistance is at MA250. What if the stock price falls below MA250? Let's observe the third chart.
3.Monthly candlestick chart.- For long-term investment, this stock can be bought (MA60 and MA250 are still moving upwards). For short-term, this stock is in a downtrend, currently MA5 and MA10 are moving downwards, but by observing the third chart, you can see that there is significant resistance at MA60, so you can consider buying at the price of MA60.
4. You can understand the price of each moving average (MA) as the price to buy and sell. When the stock price falls to the average line and bounces back, it indicates that there is significant resistance at that average line. When the stock price falls below the average line, then the next resistance is at the next average line. For example, if the stock price falls below MA60, then the next resistance is at MA250, and you can consider buying at the price of MA250. On the contrary, when the stock price rises and breaks through the average line, you can set the price of the previous moving average line as the selling price.
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
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steady Pom pipi OP : Huh, I've finally finished writing it! There is a flash back all the time, and the written text is gone. I don't know if it's an internet problem.
steady Pom pipi OP :
steady Pom pipi OP : So nervous I forgot to add emojis to the article this time! It's just not my style.![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
Meta Moo : precise analysis, great work!![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
steady Pom pipi OP Meta Moo :
虎猪密友 : Excuse me, when can I use EMA and MA? I'm a little confused about this point. Thank you.
steady Pom pipi OP 虎猪密友 : https://www.moomoo.com/hans/community/feed/107966949556230?lang_code=0
For traders who like high-volatility market trading or intraday trends, EMA is more suitable because it reacts faster than MA, but it is vulnerable to misinformation.
I am not very familiar with EMA indicators, this is only my personal point of view, not investment advice.
steady Pom pipi OP : Update-I added another stock$Verizon (VZ.US)$As a reference study, welcome to discuss it together.
虎猪密友 steady Pom pipi OP : Thank you for your advice.
kris_ steady Pom pipi OP : Hello, I'm a moo staff member. I'm sorry for the inconvenience.
Where did you encounter the “written text is missing” situation on iOS/Android/PC/Mac/Web?
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